Phaunos Timber Fund Ltd has announced two developments in South America, as part of a strategic plan to expand in the area.
Phaunos and Brazilian firm Nemus are to form a joint venture that will focus on developing teak and eucalyptus plantations in the Mato Grosso region of Brazil.
The company has committed US$150m to the venture, with Nemus contributing its existing Forest Stewardship Council-certified teak and eucalyptus plantations.
It has also announced a US$6.3m deal to purchase up to 4,000ha of plantation land in south-east Uruquay, which will be used to grow short rotation eucalyptus.
“Phaunos has developed specific strategies for each region in South America where we plan to expand,” said Keith Oates, chairman of the Phaunos board of directors.
Speaking on the deal with Nemus, Mr Oates added: “We anticipate growing this partnership over the coming years and expanding into additional businesses from this platform.”
